SK E&S and Copenhagen Infrastructure Partners (CIP) have secured financial closure on the 99MW Jeonnam 1 offshore wind project in South Korea.
The wind farm, located off the coast of Shinan County in Jeonnam Province, is slated for completion by the end of 2024.
Established in 2020, Jeonnam Offshore Wind Power is a joint venture between SK E&S and CIP, owning 51% and 49% respectively. This venture heralds the expected commencement of South Korea's inaugural commercial-scale offshore wind farm in 2024. A joint collaboration between SK E&S and Copenhagen Offshore Partners (COP), CIP's exclusive offshore wind development partner, has advanced the project.
Furthermore, SK E&S and CIP are in the development stages of Jeonnam 2 and Jeonnam 3. These two offshore wind initiatives have a combined potential output of 800MW.
Collectively, Jeonnam 1, 2, and 3 aim to bolster South Korea's objective of attaining 14.3GW of offshore wind energy by 2030, marking a substantial escalation from the present 0.1GW.
In 2017, Jeonnam Offshore Wind Power acquired an electricity business license. Subsequently, in 2022, a grid connection agreement was established with KEPCO, South Korea's state-owned utility, ensuring grid integration for Jeonnam 1 in 2024. The same year, Jeonnam 1 secured a 20-year fixed-price offtake contract with Korea Hydro & Nuclear Power, following South Korea's inaugural wind offtake auction.
Moreover, throughout 2022, the project entered into manufacturing and construction contracts with renowned South Korean firms such as Hyundai Engineering and Steel Industries, Hyundai Electric and Gaon, KT Submarine, and LS Cable and System. Mokpo New Port will serve as the marshalling port during the construction phase due to its proximity to the Jeonnam 1 site.
Daniel Yun, Jeonnam 1's Chief Executive, commented on the project's significance, stating that it “is poised to supply green electricity for an estimated 60,000 Korean households.”
Torsten Lodberg Smed, Senior Partner at CIP, highlighted the company's commitment to South Korea's renewable energy prospects, emphasizing its ongoing investments in multi-gigawatt scale wind power projects and industrial networks in the country. Smed concluded, “We're on the cusp of the construction phase for Jeonnam 1, and we anticipate a successful partnership and completion with our associates.”
